Niko Resources Signs Bapex JV Agreement

Niko Resources reports that the joint venture agreement with Bapex on the Feni and Chattak fields was signed on October 16, 2003 in accordance with the approval accorded by the Government of the Peoples Republic of Bangladesh.

Major terms of the joint venture for Feni and West Chattak are Niko will pay 100% of the costs to earn 80% with a sliding scale to 58% subject to a 300% capital cost recovery.

In East Chattak, Niko will earn 75% with a sliding scale to 50% subject to a 300% capital cost recovery.

The project is subject to a 4% income tax rate that is also subject to capital cost recovery. Gas is currently selling at $2.25 to $2.50 US per mcf and the country is experiencing a shortfall in gas supply.

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